Lining Ordering Society: Reform Of Thinking And Mode

< p > since the outbreak of the sports brand inventory crisis, the traditional ordering mode has been increasingly questioned.

In the past, through ordering, enterprises could quickly withdraw funds, but also caused a lot of inventory.

Because the information pmission is out of control, retailers are optimistic about demand, then order additional, brand manufacturers blindly increase production, and when the market is good, they can cope with them. Once the market demand falls, it is inevitable to generate high inventory.

"Management has an effect called beer effect.

From the agent to the distributor, to the retailer, and from the reverse, if there are some minor mistakes on the basis, the manufacturers will be magnified and cause great errors.

Zhang Qing, the founder of the key road, said.

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< p > "the previous paragraph, the industry has made a summary, the past sales mode actually has problems, to be changed, one is the order mode, the other is the distribution mode.

At present, inventory is so high that this order pattern has played a negative role. "

Zhang Qing said.

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< p > "we think that the mode of over reliance on wholesale operation in the past has already met the bottleneck. From the perspective of the development of the industry, the retail oriented business mode is inevitable.

This retail oriented business model is an innovation in the whole industry. "

Li Wei, director of brand relations at Li Ning Co, mentioned in a recent public relations campaign.

Li Wei said the retail oriented business model innovation is part of Li Ning Co's announcement of the channel revival plan at the end of 2012.

Li Ning Co will adjust the pattern of futures orders prevalent in the industry in order to adapt to market changes.

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< p > Li Ning Co's earnings report shows that as of June 2012, the stock of the company has reached 1 billion 138 million yuan, and from the accounts receivable, the inventory in the dealer chain is up to 2 billion 500 million yuan, and two items add up to 3 billion 638 million yuan.

According to the industry analysis, if such a huge inventory can not be solved, Lining's distribution channels will be dragged down, and its new sales plan will also be affected. If the dealer launches his own inventory under the pressure of repayment, Lining's brand and price system will also be shaken.

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< p > Li Ning Co adopts the distribution mode of "brand agents - agents at all levels - retailers and consumers", and orders 4 times a year, six months ahead of time.

However, agents often order more goods according to their own judgment to make up for them, and brands store more goods for replenishment.

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< p > agents decide the order quantity through the local sales estimate. China's a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" industry still relies on downstream distributors rather than consumers to provide market information.

Secondly, the extensive production and operation mode causes the distortion of demand gradually expanding. Agents tend to order more goods for goods to be broken, and brands store more goods for replenishment.

In fact, Li Ning Co dealers also recognized the drawbacks of this sales mode, hoping to adjust or cancel it.

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< p > "every year Lining wants to open 4 orders, every time he has to order a lot, which is too much pressure for dealers."

Li Ning Co, a reluctant dealer, said: "although the futures price is low, the new products will have to deal with inventory at a special price for almost half a month after the launch of new products. When they digest their inventory, they are losing money, making money in front and losing money later."

It is precisely because of the above mode that many dealers will place orders at the minimum and prefer to buy high priced spot goods.

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< p > changing the sales mode is a weathervane. This time, Lining will be a guide to the industry.

In Lining's revival plan, Li Ning Co said that it would pform from the wholesale mode of operation in the past to more retail and consumer oriented, provide unified brand experience through product planning store operation, improve supply chain and order mode to reduce costs and time to market.

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< p > double pformation of operational thinking and mode < /p >

< p > "the current order mode is still the most mainstream business mode in the sporting goods industry.

But what we need to do is to adjust the order mechanism so as to adjust the matching degree of goods, so as to reduce old stock, upgrade the proportion of new products, optimize product group cargo and improve marketing channels. These are the best ways to revitalize channel potential.

Li Wei said.

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Prior to "P", Jin Zhenjun, executive vice chairman of the board of directors of Li Ning Co, also said he wanted to change the order mode.

He believes that in China, products are mostly wholesale to distributors. They decide what they want to buy, but many Chinese buyers have different levels. Most of them choose products that are more conservative and sell well, and give up products that help promote brand image.

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< p > and Li Ning Co is trying to have a leading order. 30% to 50% of distributors' products are Li Ning Co.

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< p > Li Wei said that after several months of trial, Li Ning Co has gained gratifying results, so it has also confirmed the choice of this strategy.

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"P", while garment industry's independent critic Ma Gang believes that "it is impossible to return to the spot system at once, flexible ordering is a useful attempt."

He has actively advocated the adjustment and reform of the existing futures system in the clothing industry.

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< p > Lining's new policy comes mainly from Jin Zhenjun's experience in Daphne.

Daphne is mainly a direct store and its distribution is determined by headquarters.

After investing in Daphne in 2009, Jin Zhenjun, the investment organization TPG, led Daphne out of the woods.

In the two years of Daphne, Daphne's share price increased by 4 times, and sales increased by 50%.

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< p > a lot of people in the industry think that the day of success or failure of the order will be gone forever. The battleground of the terminal is the victory or defeat.

The industry believes that we should learn fast fashion brand ZARA and other enterprises rapid response supply chain mode.

An industry insider has made a more vivid analogy: fast supply chain management is like drinking red wine, plans to drink three bottles, first open a bottle, if the other party's alcohol consumption is bad, drink the finished wine and finish it well, then drink a good bottle, drink a good bottle, drink too much, stop it too much.

According to accurately predict the other party's alcohol consumption to open, fill, adjust and retreat.

Wang Yiming, a sports marketing expert, thinks Jin Zhenjun has some experience, but there is still doubt whether he can succeed in Lining.

Because the sporting goods industry is still very special.

After all, the most important thing is the confidence index of dealers to Lining brand.

With confidence, everything is not a problem.

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< p > high inventory calls for pre-sale mode < /p >.

< p > actually, not only in the clothing industry, but also in many traditional industries in China.

How to solve the problem of high inventory has become a worry for countless manufacturers.

In the "double eleven" shopping Carnival ended in 2012, Tmall and Taobao realized a Alipay turnover of up to 19 billion 100 million yuan.

In 2012, the "double eleven" big promotion is still 30 days away. Tmall released the first large-scale formal C2B pre-sale activity since the establishment of the electricity supplier, causing great concern in the industry.

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< p > pre-sale rules are as follows: the activity time is from October 15th to November 10th; for pre-sale goods, consumers can pay a deposit of 10% first, and then pay the final payment in November 11th, the merchant will deliver the goods in November 12th; the pre-sale goods all provide the postal service; at the same time, when the deposit is prepaid successfully, the buyer has the opportunity to get Tmall red packets; the pre-sale stage is mainly 5 times, the first is for the big card, luxury goods, gold and winter clothes, and the other 4 are for home / home decoration, car / supplies, life / personal, digital / household appliances.

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< p > the so-called "pre-sale" mode is to use the Internet to gather individual scattered consumer demand information in a short time and give the manufacturer a large order. After the manufacturer gets the order in advance, it can optimize the back end, the middle end or the front end of the supply chain, and more accurately lock the consumers, prepare the stock in advance, eliminate the inventory, and manage the upstream and downstream supply chain more effectively, so that the production cost, circulation cost and inventory cost can be greatly reduced.

In short, the pre-sale is sales orders, deposits, and then organize the development and production, and then pport, and circulation, and finally achieve terminal sales, which is a great impact on the offline buyer system, will gradually subvert the traditional way of sales.

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What will happen if the "P" pre-sale mode is put into the clothing industry? From the perspective of the entire apparel retailing, the whole channel inventory is very huge. If in this process, part of the important products will turn to the Internet channel and turn to customization, such as a new garment, first proofing, sampling clothes, then showing, receiving orders, and organizing mass production. In short, the dealer decides what exactly to produce and how many products it produces. This will greatly change the competitive position of the manufacturers in the market and achieve the maximum low inventory.

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